The RBA did it again, raising interest rates by 25 bps to 4.10 percent on Tuesday: the highest level since April 2012. The world was a little different back in 2012, the RBA had been mostly cutting rates since the GFC and then governor Glen Stevens was ...
Learn moreIn 1986, then treasurer Paul Keating warned that Australia could become a “banana republic”. 38 years later, has Australia become an iron ore and coal republic? “This is the lucky country, we can dig up another mound of...
Learn moreFears of a financial meltdown in the US and Europe have faded and instead we have returned to regular broadcasting with slowing inflation and slowing economies. The UK with its stubborn inflation remains the odd country out. China is still benefiting fr...
Learn moreThere is no rest for the wicked and so after a short pause, the RBA is back at it again. Dr Lowe raised the cash rate by another 25 bps on Tuesday with the promise of more increases if needed. Inflation may be slowly falling, but not fast enough for the...
Learn moreThe Big RBA Unwind During the height of the COVID-19 pandemic, the RBA pumped billions into the financial system. Now we are in the middle of the big unwind as the RBA looks to tighten financial conditions further in response to high inflation. ...
Learn moreCentral bankers were already suffering from analysis paralysis with inflation versus recession, but March has now thrown banking crises into the mix. We live in interesting times! The good news is that for the investor, there are gains to be had in vari...
Learn moreAfter ten consecutive interest rate rises, the RBA finally decided to pause. The interest rate remains at 3.5 percent. There is always a lagged response to interest rate rises but it has taken a while for the Australian economy to slow down. On top ...
Learn moreChart of the Month - March 2023 Are bad loans to Commercial Real Estate (CRE) the next stage of the US banking crisis? The inflation-recession dichotomy has been busted by a US and Swiss banking crisis. Duration risk and an old fashioned bank ru...
Learn moreInterest rates will still need to rise higher and for longer, but there are signs in Australia and the major economies that a slowdown is coming. How fast that slowdown occurs will determine the actions of central banks over the next year. What is h...
Learn moreOn 7 March, the RBA did what was expected and raised the official interest rates by 25 bps to 3.60 percent. It was the tenth increase in a row. More increases will come this year, but we should start to see a slowdown in rate increases going forward. Th...
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